What do I do if I have a tax inspection?

How do you react to a tax inspection?

Stay calm. You haven’t committed murder!

- How does a tax inspection work in Belgium? Usually, you will receive a letter from your tax office, informing you that a tax official (whom you already detest… go on, we’re joking!), will be coming to see you a few weeks later. No stress! First of all, the date given is a proposed date. Of course, you can defer this obligatory appointment for a few weeks. A simple email sent to your tax inspector or, perhaps better still, a telephone call, will give you time to “breathe” and to prepare both your defence and the supporting documents (your books, your invoices for professional invoices) to be presented.

- How do you defend your position during a tax inspection? Assisted by a tax adviser or on your own, there are a few tricks and tips to come out of a tax inspection victorious. The first one will make you smile: you will benefit hugely from calling on a tax expert to help you and, above all, not being present on the day of the inspection! Why? Twenty years of experience of such situations have convinced us that an atmosphere of restrained deaf aggressiveness almost always reigns when the taxpayer is present at the inspection. This is not the case if the interview takes place between professionals, between the tax official and your tax adviser. Who after all can defend you to the limit! Another advantage: if tricky questions arise (it happens!), your tax consultant will be able to negotiate a response period to give you time to gather the information requested and then take the opportunity to talk to you and build an effective defence.

- If your taxable income is likely to be adjusted, what is the best attitude to adopt? Whether or not you are assisted by a tax expert, common sense will prevail and if the monetary value of the tax adjustment is small, we of course urge you to consent to sign the written agreement that the tax official is offering you. However, you are not obliged to do so: without your signature, the tax inspector will have to send you an adjustment notice by recorded delivery (see our article on this subject in our newsletter), and will have to explain the reasons for the proposed adjustment in writing. What’s more, you will have one month to respond, which gives you time to hone your defence.

Good luck!